Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a last-value forecast?
A) 0
B) 0.01
C) 0.1
D) 0.5
E) 1

Name: Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a last-value forecast? A) 0 B) 0.01 C) 0.1 D) 0.5 E) 1
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Question

Quizplus · Accepted Answer

A smoothing constant of 1 in exponential smoothing means that the forecast will completely rely on the most recent observation, effectively making it equivalent to a last-value forecast.

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